Thought leadership  

31/05/2017

RETHINKING HEALTHCARE

Healthcare_Intranet-M.jpg

In 1913, John D Rockefeller famously argued that “disease is the supreme ill in human life.” Plights such as obesity and cancer are posing new challenges for scientists and healthcare donors alike, as they become bigger killers than infectious diseases.

 

Health and medicine consistently rank as the second largest area of giving after education, mobilising over USD 20 billion a year in the US alone. “With an endowment over USD 40 billion and annual expenditure on health over USD 2 billion, the world’s largest health-centred philanthropy, the Bill and Melinda Gates Foundation, spends more on health programmes than many national governments,” remarks Karl Auersperg-Breunner, from our London office.

Funding and creativity are needed. In 1913, John D Rockefeller famously argued that “disease is the supreme ill in human life.” Plights such as obesity and cancer constantly pose new challenges, as they become bigger killers than infectious diseases.

Driven by three megatrends, we currently live through a fascinating re-configuration of health philanthropy:

  • The adoption of a holistic view of the social determinants of health;
  • Amazing new personalised health solutions stemming from advances in biotechnology, nanotechnology, robotics and the information revolution; and
  • A major demographic transformation with a higher number of older people than ever before in history, as well as a clearer view of healthcare needs in the developing world.

“For health-focused philanthropists, there are powerful new possibilities to engage. At Lombard Odier, we are fortunate in having a long record of supporting them and their initiatives,” remarks capital partner Bart van Leemput.

The “Social Determinants of Health” is expanding  the scope of health philanthropy. Established ways to engage in health philanthropy include funding research, new hospital wings, new healthcare technologies, or expanding outpatient services. Yet in 2003, the World Health Organisation (WHO) cast the net much wider. Its new concept of “social determinants of health” (SDOH) expanded the focus to include the economic and social conditions of a population as factors that influence differences in health status.

This perspective provides enlightening insights: access to healthcare and the quality of care contribute roughly one-fifth to health outcomes. Four-fifths of outcomes are influenced by socioeconomic factors (40%), health behaviours such as tobacco use or diet (30%), and the physical built and general environment (10%). The implications are straightforward: it is important to engage both “upstream” in factors co-determining health outcomes, as it is to engage “downstream,” in the provision of health solutions.

Four engagement models

Today, health philanthropies generally fall into one of the following categories:

  • Responsive grant-makers, financing the best health care organisations they can find;
  • Initiative-based grant-makers; they develop specific health programmes, set objectives, and then select charitable recipient organisations to implement the programmes;
  • Capacity-builders that support healthcare institutions to modernise them or otherwise build out their capacity; and
  • Operating grant-makers that design and execute healthcare programmes themselves.

The advent of healthcare 2.0

  • Next to the WHO’s wider scope, the “Fourth Industrial Revolution’s” combination of analytics, data and technology has also begun to completely transform what’s possible in healthcare.
  • Powered by the easy availability of digitalised medical records, healthcare will focus more and more on preventive medicine.
  • The medical profession will change in fundamental ways: data and e-health will revolutionise the way doctors diagnose disease and treat patients.
  • The “Internet of Things” will provide easy delivery of bespoke healthcare, with service robots becoming more central to its delivery (while also raising new questions around fairness, privacy, security, and societal impacts). Benoît Smets from our Brussels office also serves on the board of Handicap International and remarks: “To empower disabled people living in situations of conflict or natural disasters, projects on the ground have started to use 3D printers to prepare optimally fitted prostheses. That’s the future.”
  • We will also see new forms of collaborations emerge. They will connect previously “siloed” medical experts so researchers, healthcare organisations and other industry players can jointly diagnose and cure disease.

According to the WHO, cancer is now the leading cause of death globally, taking more than seven million lives annually. “With Fondation Philanthropia, we are directly engaged in bringing the possibilities of the Fourth Industrial Revolution to bear on shifting out the frontiers of healthcare,” remarks managing partner Denis Pittet, the Foundation’s President. To fulfil a client’s wish to support the development of new therapies, training and knowledge-sharing for the fight against cancer in France, Fondation
Philanthropia has been the largest private donor to Gustave Roussy, Europe’s leading cancer centre, since 2013.

Thanks to Fondation Philanthropia’s support, Gustave Roussy is one of the first healthcare establishments in Europe to purchase the latest version (XI) of the Da Vinci, an ultra-modern surgical robot. “This robot represents a real technological revolution,” explains Dr Françoise Rimareix, a plastic surgeon and head of the breast surgery unit: “It is the only one in France which avoids scarring and prevents lymphatic sequelae. This will alter and considerably improve patients’ comfort and quality of life and really change their view of this operation.”

Public funding does not finance such equipment. The Foundation’s support has allowed Gustave Roussy to undertake new research for the use of the robot, leading to two breakthroughs in 2016: a minimally invasive procedure to remove tumours and reconstruct the breast, and one for thyroid cancer using a passage behind the ear. Both procedures leave patients with only a small discreet scar, and a shorter (and less painful) recovery period. Moreover, the intervention is more cost effective.

“Many of our clients (and colleagues) are concerned that a lot still needs to be done in the fight against cancer,” highlights Nathalie Rossiensky, from the Paris office. Our philanthropic footprint and relationships with organisations such as Gustave Roussy add an engaging new dimension to the client experience.”

Both the developing and developed world matter
Around the world, the critical shortage of skilled personnel is one of the greatest challenges. According the WHO, the current deficit of about 7.2 million skilled health care workers globally will likely increase to 12.9 million by 2035.

Thanks to the will of a donor, Fondation Philanthropia has supported various Union for International Cancer Control (UICC) projects. For example, financing the recruitment of three extra staff has allowed UICC to better share tools across its network. Fondation Philanthropia is currently also supporting UICC to design networking and training opportunities for members such as national cancer leagues, physicians’ societies and patient support groups, starting with North and West Africa.

To the client’s satisfaction, this first grant is now supplemented by support from the Foundation Cheikh Khalifa Ibn Zaid of the Moroccan royal family, with a focus on West Africa. During the UICC global conference recently held in Paris, a new programme dedicated to chief executives of member organisations brought home the benefits of such systematic knowledge-sharing between members in advanced and developing countries.

Changing demographics will keep upsetting the apple cart
The re-configuration of healthcare opens up tremendous new opportunities for health philanthropy – while raising the stakes regarding the need to achieve success. Today, ageing brings complex health problems such as chronic illnesses. There are 11 million people over the age of 80 in America, and that number will double by 2025. In Switzerland, the share of people over the age of 80 is forecast to double from 5% (2015) to 10% in 2045. Thus far, most of the world’s medical systems are poorly prepared to provide the right solutions in scale, and at affordable cost.

Managing partner Christophe Hentsch remarks: “Next to the thematic investments we offer around the ageing demographic, I am proud that we are also helping our clients to make a real difference through their philanthropy, leveraging our competences and relationships.”

As we rethink everything, it’s important to also have other pathways for impact on the radar. Take the Global Tobacco-free Pledge, where specialised non-governmental organisations (NGOs) engage in advocacy to advance tobacco-free investment by eliminating tobacco from investment portfolios across the globe. Thus far, they have managed to persuade 35 pension funds in Australia to disinvest from tobacco, for a total of USD 2 billion; in May 2016, AXA decided to divest tobacco industry assets valued at 1.8 billion euros (EUR). Certainly, a lot of work remains ahead in healthcare. Given the many advances and innovations, one can only be optimistic.

IMPORTANT INFORMATION – GENERAL MARKETING
This is a marketing communication issued by Bank Lombard Odier & Co Ltd or an entity of the Group (hereinafter “Lombard Odier”). It is not intended for distribution, publication, or use in any jurisdiction where such distribution, publication, or use would be unlawful, nor is it aimed at any person or entity to whom it would be unlawful to address such a document. This marketing communication is provided for information purposes only.
It does not constitute an offer or a recommendation to subscribe, to purchase, sell or hold any security or financial instrument. It contains the opinions of Lombard Odier, as at the date of issue. These opinions and the information herein contained do not take into account an individual’s specific circumstances, objectives, or needs. No representation is made that any investment or strategy is suitable or appropriate to individual circumstances or that any investment or strategy constitutes a personal recommendation to any investor. Tax treatment depends on the individual circumstances of each client and may be subject to change in the future. Lombard Odier does not provide tax advice. Therefore you must verify the above and all other information provided in the marketing communication or otherwise review it with your external tax advisors.
European Union Members: This marketing communication has been approved for issue by Lombard Odier (Europe) S.A., a credit institution authorised and regulated by the Commission de Surveillance du Secteur Financier (CSSF) in Luxembourg and by each of its branches operating in the following territories: Belgium: Lombard Odier (Europe) S.A. Luxembourg · Belgium branch, a credit institution regulated in Belgium by the Banque nationale de Belgique (BNB) and the Financial Services and Markets Authority (FSMA); France: Lombard Odier (Europe) S.A. · Succursale en France, a credit institution and regulated in France by the Autorité de contrôle prudentiel et de résolution (ACPR) and by the Autorité des marchés financiers (AMF) in respect of its investment services activities; Italy: Lombard Odier (Europe) S.A.  • Italian Branch, credit institution governed in Italy by the Italian stock market regulator (Commissione Nazionale per la Società e la Borsa , or CONSOB) and the Bank of Italy; Netherlands: Lombard Odier (Europe) S.A. · Netherlands Branch, a credit institution regulated in the Netherlands by De Nederlandsche Bank (DNB) and by Autoriteit Financiële Markten (AFM); Spain: Lombard Odier (Europe) S.A. · Sucursal en España, a credit institution regulated in Spain by the Banco de España and the Comisión Nacional del Mercado de Valores (CNMV); and United Kingdom: Lombard Odier (Europe) S.A. · UK Branch, a credit institution regulated in the UK by the Prudential Regulation Authority (PRA) and subject to limited regulation by the Financial Conduct Authority (“FCA”) and the Prudential Regulation Authority (“PRA”). Details of the extent of our authorisation and regulation by the PRA and regulation by the FCA are available from us on request. UK regulation for the protection of retail clients in the UK and the compensation available under the UK Financial Services Compensation Scheme does not apply in respect of any investment or services provided by an overseas person.
In addition, this marketing communication has also been approved for issue by the following entities domiciled within the European Union: Gibraltar: Lombard Odier & Cie (Gibraltar) Limited, a firm which is regulated and authorised by the Financial Services Commission, Gibraltar (FSC) to conduct banking and investment services business; Spain: Lombard Odier Gestión (España) SGIIC, S.A., an investment management Company authorised and regulated by the CNMV. Switzerland: This marketing communication has been approved for issue by Bank Lombard Odier & Co Ltd, a bank and securities dealer authorised and regulated by the Swiss Financial Market Supervisory Authority (FINMA). United States: Neither this document nor any copy thereof may be sent, taken into, or distributed in the United States of America, any of its territories or possessions or areas subject to its jurisdiction, or to or for the benefit of a United States Person. For this purpose, the term “United States Person” shall mean any citizen, national or resident of the United States of America, partnership organized or existing in any state, territory or possession of the United States of America, a corporation organized under the laws of the United States or of any state, territory or possession thereof, or any estate or trust that is subject to United States Federal income tax regardless of the source of its income.This marketing communication may not be reproduced (in whole or in part), transmitted, modified, or used for any public or commercial purpose without the prior written permission of Lombard Odier. © 2016 Bank Lombard Odier & Co Ltd – all rights reserved.

Actualités

Marchés émergents - La Chine étend son hégémonie

Quarterly Investment Strategy

20/07/2017

Japan - Difficile de faire mieux

Quarterly Investment Strategy

19/07/2017

La gouvernance familiale repensée

Thought leadership

18/07/2017

Europe - L’euroscepticisme a moins la cote

Quarterly Investment Strategy

17/07/2017

Etats-Unis - Ni inflation, ni récession

Quarterly Investment Strategy

12/07/2017

Bilan à mi-année : jusqu’ici tout va bien

Quarterly Investment Strategy

10/07/2017

Perspectives d'investissement - 3e trimestre 2017

Perspectives d'investissement - 3e trimestre 2017

Investment Strategy Podcast

06/07/2017

RETHINK EVERYTHING

Thought leadership

28/06/2017

Les philanthropes, la finance et la cité

Thought leadership

20/06/2017

RETHINKING EDUCATION

Thought leadership

15/06/2017

RETHINKING HEALTHCARE

Thought leadership

31/05/2017

Rethinking “Next-Gen” Philanthropy

Thought leadership

24/05/2017

Gestion des fondations en transformation

Thought leadership

23/05/2017

L’investisseur « 100% impact »

Thought leadership

19/05/2017

Asset Allocation – Maintenir un biais positif

Quarterly Investment Strategy

18/05/2017

Elections françaises - stratégie d'investissement

Elections françaises - stratégie d'investissement

Investment Strategy Podcast

10/05/2017

Elections présidentielles françaises

Investment Strategy

08/05/2017

Hedge funds and rising interest rates

Investment Strategy

01/05/2017

Elections françaises

Elections françaises

Investment Strategy Podcast

25/04/2017

Elections présidentielles françaises

Investment Strategy

24/04/2017

Japon: La question de la longévité

Quarterly Investment Strategy

24/04/2017

Europe: Vers la fin des taux négatifs ?

Stratégie de placement trimestrielle

21/04/2017

Le Pen, Frexit and the future of the EU

Investment Strategy

10/04/2017

Perspectives d'investissement du 2ème trimestre 2017

Perspectives d'investissement du 2ème trimestre 2017

Investment Strategy Podcast

03/04/2017

Obligations climatiques: il faut rester vigilant

Nos experts dans la presse

01/04/2017

Le franc, refuge des élections en Europe

Nos experts dans la presse

16/03/2017

Rethinking sustainable cities with Monocle

Rethink everything

24/02/2017

Brexit : survivre en dehors du marché unique ?

Stratégie d'investissement

19/01/2017

Japon : un gagnant « accidentel » ?

Stratégie de placement trimestrielle

29/12/2016

Marchés émergents : La reprise ne fait que commencer

Stratégie de placement trimestrielle

28/12/2016

Europe: encore d’importants risques politiques à l’horizon

Stratégie de placement trimestrielle

23/12/2016

États-Unis : une cure de vitamines pour une économie fatiguée

Stratégie de placement trimestrielle

22/12/2016

Perspectives d’investissement 2017

Perspectives d’investissement 2017

Investment Strategy Podcast

19/12/2016

OPEC rises from the ashes

OPEC rises from the ashes

Investment Strategy Podcast

04/12/2016

Diabète : une technologie révolutionnaire

Révolution thérapeutique

18/11/2016

Élections américaines : perspectives d'investissement

Élections américaines : perspectives d'investissement

Investment strategy podcast

16/11/2016

Positioning portfolios for President Trump

Positioning portfolios for President Trump

Investment strategy podcast

10/11/2016

Donald Trump elected President

Investment Strategy

09/11/2016

Perspectives élections américaines

Perspectives élections américaines

Investment Strategy Podcast

24/10/2016

Perspectives d'investissement du 4e trimestre 2016

Perspectives d'investissement du 4e trimestre 2016

Investment Strategy Podcast

21/10/2016

Japon : Seul en première ligne

Stratégie de placement trimestrielle

19/10/2016

Un dernier trimestre placé sous le signe de la politique

Stratégie de placement trimestrielle

07/10/2016

Philanthropie : l'indispensable mue

Philanthropie

20/09/2016

SOUTIEN FISCAL : LE GRAND RETOUR ?

Stratégie d'Investissement

01/09/2016

LE RETOUR DE LA « CÉLÈBRE BoJ »

Stratégie d'investissement Asie

09/08/2016

L’OR EST-IL RÉELLEMENT UNE BONNE COUVERTURE ?

Bulletin de stratégie d'investissement

22/07/2016

DES RISQUES POLITIQUES ET DES LEVIERS ÉCONOMIQUES

Stratégie de placement trimestrielle

14/07/2016

PERSPECTIVES D’INVESTISSEMENT DU 3e TRIMESTRE 2016

PERSPECTIVES D’INVESTISSEMENT DU 3e TRIMESTRE 2016

Investment Strategy Podcast

13/07/2016

FAÇONNER L'AVENIR DE L'IMPACT INVESTING

Impact Investing

07/07/2016

BREXIT : QUELLES PERSPECTIVES POUR LES BANQUES ?

Point de vue des marchés

04/07/2016

L’ARGENT POURRAIT-IL TOMBER DU CIEL ?

Bulletin de stratégie d'investissement

01/06/2016

MARCHÉS ÉMERGENTS : STABILISATION DU PÉTROLE ET DU DOLLAR BIENVENUE

Stratégie de placement trimestrielle

04/05/2016

PERSPECTIVES D’INVESTISSEMENT

PERSPECTIVES D’INVESTISSEMENT

Investment Strategy Podcast

29/04/2016

JAPON : LES CERISIERS FLEURISSENT, LES SALAIRES NATIONAUX FLÉTRISSENT

Stratégie de placement trimestrielle

28/04/2016

EUROPE : LA REPRISE DEVRAIT MAINTENIR SA CADENCE

Stratégie de placement trimestrielle

25/04/2016

ÉTATS-UNIS : l'ECONOMIE RESTE SOLIDE

Stratégie de placement trimestrielle

21/04/2016

LE CYCLE DE CREDIT TOUCHE A SA FIN

Perspectives d'investissement

19/04/2016

LES CRAINTES D’UN BREXIT SONT LÉGITIMES (PARTIE II)

Investment Strategy Bulletin

18/04/2016

L'ECONOMIE MONDIALE A ENCORE DES RESSOURCES

Stratégie de placement trimestrielle

15/04/2016

LES CRAINTES D’UN BREXIT SONT LÉGITIMES (PARTIE I)

Bulletin de stratégie d'investissement Avril 2016

13/04/2016

ALLOCATION D'ACTIFS

Stratégie de placement trimestrielle

12/04/2016

UNE CRISE DE CONFIANCE MONDIALE ?

Philanthropie

05/04/2016

SWISS FINTECH INNOVATION

Association

31/03/2016

AMERIQUE LATINE - QUELLES OPPORTUNITES ?

Investment strategy

23/03/2016

VERS DES TAUX NEGATIFS

Investment strategy

24/02/2016

L'ART DE MESURER L'IMPACT

Stratégie de placement

28/01/2016

PERSPECTIVES D’INVESTISSEMENT DU 1er TRIMESTRE 2016

PERSPECTIVES D’INVESTISSEMENT DU 1er TRIMESTRE 2016

Investment Strategy Podcast

19/01/2016

LE PIRE EST-IL PASSÉ POUR LA RUSSIE ?

Strategy Bulletin

03/11/2015

PERSPECTIVES D’INVESTISSEMENT DU 4ÈME TRIMESTRE 2015

Investment Strategy Podcast

14/10/2015

INVESTIR SUR L’« ÂGE D’OR »

Strategy Bulletin

28/09/2015

Coup de projecteur sur la Fed

Strategy Bulletin

30/07/2015

Grèce : après le référendum

Strategy Bulletin

06/07/2015

La hausse du pétrole est plafonnée

Strategy Bulletin

28/05/2015

Opportunities and risks in global markets

Opportunities and risks in global markets

Investment Strategy Podcast

19/05/2015

Notre foire aux questions sur la Grèce

Bulletin d'investissement

17/02/2015

Economic outlook 2015

Bullletin de stratégie

17/12/2014

BAISSE DU PÉTROLE: BONNE OU MAUVAISE NOUVELLE ?

Bulletin de stratégie

01/12/2014

DES TEMPS DIFFICILES POUR L'AMÉRIQUE DU SUD

Bulletin de stratégie

03/11/2014

LA BNS DOIT-ELLE EMBOÎTER LE PAS À LA BCE ?

Bulletin de stratégie

20/06/2014

LA STRATÉGIE DE DÉSENDETTEMENT DE LA CHINE

Bulletin de stratégie

24/04/2014

ABÉNOMIE : LE PLUS DUR RESTE À VENIR

Bulletin de stratégie

18/03/2014

QUELLES SONT LES OPTIONS DE LA BCE

Bulletin de stratégie

13/02/2014

BAISSE DE LA CROISSANCE CHINOISE ET OPPORTUNITÉS

Bulletin de stratégie

21/01/2014